Small businesses across the country enter 2018 in strong financial positions as a result of greater access to more major credit sources which in turn is boosting credit to its highest levels since 2012. The analysis and data comes from Pepperdine Graziadio Business School and Dun & Bradstreet’s Q1 2018 Private Capital Access Index (PCA Intex), a measurement of business access to credit.
The PCA Index, first calculated in Q1 2012, is now recording the highest access to credit for small and middle market businesses at 33.9 in Q1 2018, compared to Q1 2012’s 26.6, a relative increase of 27.4%. For small businesses alone in Q1 2018, the PCA Index sits at 33.9, a 3.4% increase from Q1 2017’s 33.1. Middle market companies experienced a larger increase, with 77.8% reporting successful loans from asset-based lenders in the last three months, increasing 16.6% from Q1 2017’s 66.7%.
Growth is another strong trend, with 88% of all surveyed businesses stating confidence their business will expand throughout 2018, breaking down to 92% of middle market businesses and 89% of small businesses. Small businesses report that competition is one of their greatest challenges, in regard to finding and retaining profitable customers. However, middle market businesses are finding it more and more difficult to attract and retain a quality workforce.
“After a prolonged era of uncertainty, small businesses are finally seeing some breathing room in their cash position,” said Pepperdine Private Capital Markets Project director, Dr. Craig R. Everett in the press statement. “Stronger cash flow means that paying the bills every month is less of a concern. I imagine that many small business owners have started to sleep better at night.”
In total, the Q1 2018 PCA Index report gathered its data from 1,237 responses collected from January 8th to January 19th, 2018.
